Broad Based Black Economic Empowerment (BBBEE)
Bagshaw Footwear regards itself as a loyal South African company. We are from Africa and our future lies here.
It is a given that we do business in South Africa with its legacy of inequality, discrimination and economic marginalisation of people based upon race and gender. In view of the past, the policies and efforts of Government to redress past imbalances, are supported. Throughout the process of transformation,
Bagshaw Footwear undertakes:
1. to remain competitive in the markets we serve;
2. to do its duty as a loyal South African citizen;
Working to comply with the Broad Based Black Economic Empowerment Act, 2003 (BBBEE) which was promulgated on 21 April 2004, and using Government’s published strategy document as a guideline, Bagshaw Footwear has set for itself the following course of action in respect of BBBEE:
- Bagshaw Footwear initiated a BBBEE rating of itself by an accredited verification agency Grant Thornton.
- Bagshaw Footwear’s business model already catered for broad based empowerment some years before BBBEE was legislated for. It is significant that the creation and development of SMME’s and the preferential sourcing of product and components from these SMME’s, also forms an important element of Government’s balanced scorecard under indirect empowerment, namely enterprise development and preferential procurement. Bagshaw Footwear believes that developing sustainable SMME’s forms an important part of the future of the industry, both in terms of employment creation and in terms of remaining competitive as well as transformation of the economy. More than 600 employees are employed by the SMME’s Bagshaw Footwear is associated with.
- We support government’s actions to grow this sector of the economy as enacted in the National Small Business Act, 1996. The entrepreneurial spirit emanating from the SMME’s with which the Company is associated, is living proof of the results that can be achieved by the small business sector and bodes well for the future wellbeing of the country.
- One of the great strengths of the small businesses we deal with, is their ability to diversify in the product they manufacture. This is due to the good level of skills on which they have built their businesses and the flexibility associated with small businesses.
- Specific Small Business and Black Economic Empowerment initiatives
The Company remains actively involved in assisting to set up and run under its guidance, a number of small businesses predominantly owned by Historically Disadvantaged Individuals. The specific actions include any combination of the following:
- Preferential supplier agreements in line with the objective of the Black Business Suppliers Development Programme.
- Fixed term supplier agreements in order to give more security to these small businesses.
- Provision of bridging finance during start-up phase.
- Provision of subsidised leasing arrangements for machines.
- Provision of subsidised factory space.
- Capacity building in technical, administrative and managerial skills during start-up and growth phase.
- Ongoing mentoring on the above aspects, working to a point of independence of the entrepreneurs involved within a 3-5 year period.
- Searching new markets to take up spare capacity or to even out drop in production demand.
- Assistance with access to State funding such as the Black Business Supplier Development Programme and the Customised Sector Programme for the Footwear and Leather Sector.
Only uppers are sourced from these small businesses. All quality control personnel are on the Company’s payroll. To ensure compliance with ISO 9001 and SABS requirements, only product that meets our stringent quality specifications is accepted into our own production processes.
Bagshaw Footwear believes that BBBEE is an economic imperative for South Africa, but needs to be implemented responsibly and on a sustainable basis.